16 May 2019
Banks in Britain could face fines if they make selective and arbitrary decisions about compensating customers who have fallen victim to fraud, the Financial Conduct Authority’s head of enforcement said on Wednesday.
A code of conduct designed to offer greater protection comes into force on May 28.
Mark Steward told a parliamentary committee while the code is voluntary: “If we see banks under the code behaving in a very inconsistent way and making selectively arbitrary decisions about what they’ll compensate and what they won’t … we might regard that as a very troubling thing.
“And it might give rise to enforcement action if we see significantly poor compliance with the code.”
Consumers lost almost 93 million pounds ($120 million) in the first half of last year alone due to so-called authorised push payment (APP) scams, one of the fastest-growing frauds in Britain.
By Kirstin Ridley, Reuters, 15 May 2019
Read more at Reuters
Count this content towards your CPD minutes, by signing up to our CPD WalletFREE CPD Wallet